Understanding Different Types of Mutual Funds

Mutual funds offer a wide variety of product types to choose from. They can be classified as on the basis of scheme structure and based on the asset class in which the scheme invests. This infographic explains the different types of mutual funds.

Open ended schemes are always open to investors and can buy or sell units on a continuous basis. On the other hand, close-ended schemes have a lock-in period. They may vary from 3-5 years depending on the scheme objective. The infographic provides information also about funds as per the asset class and debt schemes. Equity schemes are suitable for long term investment as debt schemes aim to add stability to your equity portfolio and can provide stable returns. Next, hybrid schemes provide a blend of both equity and debt.